There is no doubt that 2025 has had its share of challenges for those in the dairy industry in Pennsylvania. After peaking at $25.50 per hundredweight in October 2024, the all-milk price has been steadily falling, dropping to a low of $21 in April 2025 before increasing only 30 cents to $21.30 in May. Class III and IV milk futures hover below $20 for the remainder of the year. While low feed prices have kept milk margins above the $9.50 margin threshold for USDA’s Dairy Margin Coverage Program, higher labor, interest, and other fixed costs are making this year feel a bit tighter than last year.
The weather is also not helping. Extreme cold weather caused issues with frozen pipes and malfunctioning equipment in early 2025. Then, after a very dry March and April, it started raining and did not stop. We had six weeks of rain during the most critical part of the planting season, with record moisture levels in May. In late June, temperatures went from 65 degrees to 105 degrees in a matter of days, taking its toll on our animals. And after that, it started raining again, with parts of Lancaster County reporting six inches of rain overnight.
On top of the weather and price challenges, you have the everyday challenges that happen on dairy farms. Equipment breaks down, cows get injured unexpectedly, calves get sick. And life goes on. So, when you stop and think about everything that has happened this past year, do you get stuck on all these challenges? Or are you able to see past them and reflect on the good? In other words, is your cup half full or half empty?
A year ago, I had the opportunity to go to Times Square in New York City. While I enjoyed visiting, I could not help but think how unfortunate it is that those people who live there never get to see a country sky. They walk all day long shoulder to shoulder and only see green when there is a tree planted along the sidewalk or a flowerpot sitting outside a shop. They do not get to experience what it is like to watch a corn crop grow or see a baby calf you nursed back to health one day become a productive member of your milking herd.
Even when it is difficult, which can be often, dairy farming offers a life like no other. Every day on the farm, we are reminded that our cup is indeed half full. Hope springs eternal, in the way summer eventually transitions to fall and how perennials grow every spring, even after the harshest of winters. A healthy newborn calf can arrive after the most difficult delivery. Rain comes again, even in a summer drought.
So, in this month of celebrations, I thought it would be good to reflect on what is good in dairy right now. Here are a few things that came to my mind.
- Record high beef prices supporting margins. Thanks to a shortage of beef cattle in the US, prices for both cull cows and bull calves are at record high levels. At Greencastle on July 7, cull cow prices ranged from $1.26 – $1.56 per pound, nearly double where prices were only a couple of years ago. Dairy bull calves are averaging $900 a head, while beef cross calves are bringing $1,300.
- Interest in dairy proteins, cheaper ingredients growing. We are benefiting from a dairy renaissance right now, as consumers look intentionally for foods that can support a healthier lifestyle at a cheaper price. That trend is evidenced by the dramatic increase in cottage cheese sales, up 16 percent in 2024, and in whey protein sales, which are expected to double over the next decade.
- Technology on the farm resulting in increased productivity. The average dairy cow in the US produces 4 percent more milk than she did five years ago. Component levels also rose dramatically during that same time, with butterfat now over 4 percent. That productivity comes in part from advancements in genetics and technology on the farm, with access to data analytic tools and activity monitoring systems helping with individual cow care in a way like never before.
- Increasing capacity creating new market opportunities. While Pennsylvania has not been successful in getting a new large scale dairy processor to come to the Commonwealth yet, we will benefit from expansions and investments happening across the Mid-Atlantic region. The expanded Maola Plant in Philadelphia, along with the new Fairlife and Chobani facilities in New York, are just three examples of growing markets for Pennsylvania milk.
- A growing interest in connecting with where food comes from. The buzz about buying local has been here for more than a decade. However, as budgets become tighter, the local trend has evolved into a renewed interest in just understanding where the food we buy comes from. I call it food literacy. Consumers want to connect with the farmers who grow their food, no matter where they are buying it from, and that gives us the opportunity to tell dairy’s story.
While none of these things will ensure a corn harvest in the fall or guarantee you can pay your bills, hopefully they remind you that, even in challenging circumstances, there is always “good” to be celebrated. It is up to you to choose whether you look at your cup as “half full” or “half empty.” With this being National Ice Cream Month, I prefer to look at mine with two scoops of peach-flavored ice cream in it.
Editor’s Note: This column is written by Jayne Sebright, executive director for the Center for Dairy Excellence.